Dec. 4, 2006

Qualcomm Inc. reported plans to acquire RF Micro Devices’s Bluetooth-related assets for $39 million in cash.

Qualcomm said that the acquisition would enhance its ability to serve the burgeoning market for Bluetooth-related features in mobile handsets and headsets.

The acquisition would focus on Greensboro, N.C.-based RF Micro Device’s Bluetooth-related intellectual property and team in San Diego, CA.

The acquisition, Qualcomm said, would provide seamless integration of related functions with enhanced performance, space savings and improved time-to-market for handset vendors.

The keywords emphasized in the announcement have become buzzwords in the industry: integration, performance, footprint and time-to-market are increasingly critical for handset vendors as the market’s pace quickens and devices are crammed with technology.

RF Micro Devices said that the deal would allow it to focus more closely on its high-growth opportunities in cellular transceivers, power amplifiers and GPS components.

The company called attention to the fact that it retains its most lucrative Bluetooth assets and, it “hopes,” that the current deal presages a broader development partnership with Qualcomm, the leading CDMA-based chip and IP-licensing firm.

RF Micro Devices said the deal would lighten its Bluetooth-related expenses, while Qualcomm said the acquisition would dilute earnings in 2007 and possibly add to profits in 2008.

Aspects of RF Micro Devices’ portfolio of semiconductors is used by Nokia Corp., Motorola Inc., Samsung Electronics Co. Ltd. and LG Electronics Co. Ltd.—four of the top five handset vendors in the world.

Source: RCR News